Tax Tip of the Week
August 13, 2007

Make energy-efficient improvements to your existing home and you could save money on current and future utility costs - and possibly claim a federal tax credit of up to $500, too.

But you'll have to act soon unless Congress acts to extend the credit. Under present law, the Nonbusiness Energy Property Credit expires December 31, 2007.

Here's an overview of the two types of property that qualify for the credit.

1. Improvements to your principal residence that conserve energy and are expected to last at least five years.

These items consist of insulation materials or systems, exterior windows and doors, and certain treated metal roofs. Examples of improvements that may be eligible include radiant barrier insulation, window film, and garage doors. According to the IRS, drywall and exterior siding do not qualify.

2. Improvements to your principal residence that are designed to use less energy.

Qualifying property includes high-efficiency heating and cooling equipment, such as electric or geothermal heat pumps and air circulating fans for use in furnaces. Electric heat pump, natural gas, propane, or oil water heaters may also qualify.

The property you install must meet specified energy requirements and be in service by the end of the year. Other rules may limit the total credit you receive.

Please call our office before you start your energy-efficient home repairs and upgrades. We can help you realize the greatest tax benefit.

Questions for our Financial Expert?
E-Mail us at: finance@ClevelandSeniors.Com